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05-04-2006, 09:50 AM
HP will pass hat to fund schools
Officials: $100 million endowment would give district fiscal stability
09:07 AM CDT on Thursday, May 4, 2006
By KRISTEN HOLLAND / The Dallas Morning News
The state Legislature has exhausted two years and four special sessions searching for a new way to finance public schools.
Highland Park schools, however, have had enough. Rather than wait for money that's unlikely to come, the district will raise cash a simpler way – by asking for it.
The district's plans to build up a $100 million endowment – yes, that's $100 million – is raising some eyebrows, though. While some private schools including St. Mark's School of Texas and The Hockaday School have endowments worth nearly that much, it would be more than many colleges have in the bank.
The University of North Texas, for example, only has about $58 million in its endowment fund. Texas State, in San Marcos, has less than $39 million.
Though district officials say they need the financial security an endowment of that magnitude would provide, some say it raises equity concerns because few communities can raise that kind of cash. As public schools nationwide struggle with funding cuts, many see endowments – more common for private schools and universities – as unavoidable.
"What we're looking for are mechanisms that can assure that the gap between what the state funding formula gives you and what is needed to educate our students is covered," said Cathy Bryce, Highland Park's superintendent.
Jan Peterson, executive director of the Highland Park Education Foundation, said the goal is daunting, but doable.
"I wouldn't even say it if I didn't think it was feasible," Ms. Peterson said, adding that the nonprofit will oversee the fund.
The campaign hasn't officially begun, but an announcement about the first million-dollar donation is planned for Tuesday's school board meeting. Ms. Peterson declined to identify the donor but said it's a local resident.
She said announcements about several $250,000 and $100,000 gifts will come in the next few months.
Per-pupil spending
Though insiders are familiar with the district's financial straits, the perception that liquid gold flows from Highland Park faucets still exists.
The district is considered wealthy by the state, but it spends less per student than Dallas. Southlake Carroll, Coppell, Richardson and Plano also spend more.
During the 2004-05 school year, Highland Park spent $6,419 per student, enough to be ranked 37th out of 68 North Texas districts. The state average was $6,526 that year.
The gap would be even wider without donations.
Highland Park received $331 in private funds for each student during the 2004-05 school year. In the early 1990s, before the current school finance system started, Highland Park consistently topped the rankings statewide without private dollars.
Critics, however, say Highland Park can spend less per student because the district has minimal transportation, food service and social services costs.
Nevertheless, district leaders say they wouldn't be in a funding predicament if the tax system didn't drain their revenues. Almost three-quarters of Highland Park's property tax revenue is redistributed to poorer districts.
By the end of this summer, Highland Park will have sent almost $600 million to the state since the finance system started in 1993. Since then, parents have stepped up to fill gaps, giving more than $23.7 million.
The district's Mad for Plaid effort – which generated more than $2.5 million last year – will not be affected by the endowment.
Millions each year
Depending on the return on its investments, a $100 million endowment would allow the education foundation to give $4 million to $5 million a year to the district, Ms. Peterson said. The funds could be spent on teacher salaries, technology and campus improvements.
Unlike annual funds, endowments are like permanent savings accounts. Instead of spending the money on immediate needs, it's invested and only the earnings are used.
"The real advantage of an endowment is it provides a dedicated source of funding that's not going to be subject to budgetary crisises, changes in leadership, political clamor," said David Bass, director of governmental relations for the Council for Advancement and Support of Education, or CASE.
Dorothy Hopkins said that type of funding is needed in Highland Park.
"Not knowing what's going to happen with Robin Hood, it makes sense to keep this foundation going and raise all the money they can," said Mrs. Hopkins, whose youngest daughter is a junior at Highland Park High.
Budgetary pressure
Highland Park isn't the first public school district to look outside the tax system for money. As funding has slipped, schools nationwide – from California to Massachusetts – have turned to private sector fundraising.
"We get a lot more calls," Mr. Bass said. "A lot of it is clearly budgetary pressure, desire on the parts of the parents to make sure institutions have the capacity to provide levels of excellence above what public financing can provide."
Just look at Boston Latin School.
In 1999, the 371-year-old public school launched its first major fundraising campaign to cover costs the Boston school district could not. The five-year effort raised about $50 million for the public college-prep school.
"It's really been a godsend," said David Weiner, president of the school's alumni group. "We were able to create an endowment to provide scholarships to our seniors. We were able to use some of the money to create a bigger, more modern library."
While few would argue that raising private money is a bad business move for school districts, some say it could be seen as unfair.
"The flip side of the Highland Park story are those districts that tax at the same rate that Highland Park does or higher but can't get nearly the resources," said Margaret Plecki, an assistant professor in educational leadership and policy studies at Washington State University.
She said that leaders of less wealthy districts may question whether Highland Park needs any state funding if it has a large endowment. "This is another example of what happens when we are drawing from unequal resource bases," in this case property taxes, Dr. Plecki explained.
No desire to outspend
Dr. Bryce defended the tactic, saying that a $100 million endowment won't generate much more than what the district must raise on an annual basis now.
"I think it's fair to say that this community has no desire for us to outspend," Dr. Bryce said. "Those days are over, they're gone."
Public schools that want to maintain high student achievement must bring in private funds because state funding is declining, she said. Even colleges and universities are feeling the pinch and leaning toward public-private partnerships.
In 2005, 334 out of 746 colleges and universities reported having endowments worth at least $100 million, according to a study conducted by the National Association of College and University Business Officers. Whether Highland Park can meet its fundraising goal remains to be seen. But Bob Hopkins, founder and president of Dallas-based Philanthropy World magazine, said the endowment will be an easy sell in the Park Cities.
"Those people that live in Highland Park cherish that educational system; $100 million is not out of bounds for them," he said.
E-mail kholland@dallasnews.com
HPISD AT A GLANCE
Enrollment for 2005-06: 6,212
Average teacher salary for 2004-05: $45,550 (state average for 2004-05: $41,011)
Operating expenditures per student for 2004-05: $6,419, including $331 in private donations and participation fees (state average for 2004-05: $6,526)
Operating budget for 2005-06: $115,203,016
SOURCE: Highland Park ISD
Officials: $100 million endowment would give district fiscal stability
09:07 AM CDT on Thursday, May 4, 2006
By KRISTEN HOLLAND / The Dallas Morning News
The state Legislature has exhausted two years and four special sessions searching for a new way to finance public schools.
Highland Park schools, however, have had enough. Rather than wait for money that's unlikely to come, the district will raise cash a simpler way – by asking for it.
The district's plans to build up a $100 million endowment – yes, that's $100 million – is raising some eyebrows, though. While some private schools including St. Mark's School of Texas and The Hockaday School have endowments worth nearly that much, it would be more than many colleges have in the bank.
The University of North Texas, for example, only has about $58 million in its endowment fund. Texas State, in San Marcos, has less than $39 million.
Though district officials say they need the financial security an endowment of that magnitude would provide, some say it raises equity concerns because few communities can raise that kind of cash. As public schools nationwide struggle with funding cuts, many see endowments – more common for private schools and universities – as unavoidable.
"What we're looking for are mechanisms that can assure that the gap between what the state funding formula gives you and what is needed to educate our students is covered," said Cathy Bryce, Highland Park's superintendent.
Jan Peterson, executive director of the Highland Park Education Foundation, said the goal is daunting, but doable.
"I wouldn't even say it if I didn't think it was feasible," Ms. Peterson said, adding that the nonprofit will oversee the fund.
The campaign hasn't officially begun, but an announcement about the first million-dollar donation is planned for Tuesday's school board meeting. Ms. Peterson declined to identify the donor but said it's a local resident.
She said announcements about several $250,000 and $100,000 gifts will come in the next few months.
Per-pupil spending
Though insiders are familiar with the district's financial straits, the perception that liquid gold flows from Highland Park faucets still exists.
The district is considered wealthy by the state, but it spends less per student than Dallas. Southlake Carroll, Coppell, Richardson and Plano also spend more.
During the 2004-05 school year, Highland Park spent $6,419 per student, enough to be ranked 37th out of 68 North Texas districts. The state average was $6,526 that year.
The gap would be even wider without donations.
Highland Park received $331 in private funds for each student during the 2004-05 school year. In the early 1990s, before the current school finance system started, Highland Park consistently topped the rankings statewide without private dollars.
Critics, however, say Highland Park can spend less per student because the district has minimal transportation, food service and social services costs.
Nevertheless, district leaders say they wouldn't be in a funding predicament if the tax system didn't drain their revenues. Almost three-quarters of Highland Park's property tax revenue is redistributed to poorer districts.
By the end of this summer, Highland Park will have sent almost $600 million to the state since the finance system started in 1993. Since then, parents have stepped up to fill gaps, giving more than $23.7 million.
The district's Mad for Plaid effort – which generated more than $2.5 million last year – will not be affected by the endowment.
Millions each year
Depending on the return on its investments, a $100 million endowment would allow the education foundation to give $4 million to $5 million a year to the district, Ms. Peterson said. The funds could be spent on teacher salaries, technology and campus improvements.
Unlike annual funds, endowments are like permanent savings accounts. Instead of spending the money on immediate needs, it's invested and only the earnings are used.
"The real advantage of an endowment is it provides a dedicated source of funding that's not going to be subject to budgetary crisises, changes in leadership, political clamor," said David Bass, director of governmental relations for the Council for Advancement and Support of Education, or CASE.
Dorothy Hopkins said that type of funding is needed in Highland Park.
"Not knowing what's going to happen with Robin Hood, it makes sense to keep this foundation going and raise all the money they can," said Mrs. Hopkins, whose youngest daughter is a junior at Highland Park High.
Budgetary pressure
Highland Park isn't the first public school district to look outside the tax system for money. As funding has slipped, schools nationwide – from California to Massachusetts – have turned to private sector fundraising.
"We get a lot more calls," Mr. Bass said. "A lot of it is clearly budgetary pressure, desire on the parts of the parents to make sure institutions have the capacity to provide levels of excellence above what public financing can provide."
Just look at Boston Latin School.
In 1999, the 371-year-old public school launched its first major fundraising campaign to cover costs the Boston school district could not. The five-year effort raised about $50 million for the public college-prep school.
"It's really been a godsend," said David Weiner, president of the school's alumni group. "We were able to create an endowment to provide scholarships to our seniors. We were able to use some of the money to create a bigger, more modern library."
While few would argue that raising private money is a bad business move for school districts, some say it could be seen as unfair.
"The flip side of the Highland Park story are those districts that tax at the same rate that Highland Park does or higher but can't get nearly the resources," said Margaret Plecki, an assistant professor in educational leadership and policy studies at Washington State University.
She said that leaders of less wealthy districts may question whether Highland Park needs any state funding if it has a large endowment. "This is another example of what happens when we are drawing from unequal resource bases," in this case property taxes, Dr. Plecki explained.
No desire to outspend
Dr. Bryce defended the tactic, saying that a $100 million endowment won't generate much more than what the district must raise on an annual basis now.
"I think it's fair to say that this community has no desire for us to outspend," Dr. Bryce said. "Those days are over, they're gone."
Public schools that want to maintain high student achievement must bring in private funds because state funding is declining, she said. Even colleges and universities are feeling the pinch and leaning toward public-private partnerships.
In 2005, 334 out of 746 colleges and universities reported having endowments worth at least $100 million, according to a study conducted by the National Association of College and University Business Officers. Whether Highland Park can meet its fundraising goal remains to be seen. But Bob Hopkins, founder and president of Dallas-based Philanthropy World magazine, said the endowment will be an easy sell in the Park Cities.
"Those people that live in Highland Park cherish that educational system; $100 million is not out of bounds for them," he said.
E-mail kholland@dallasnews.com
HPISD AT A GLANCE
Enrollment for 2005-06: 6,212
Average teacher salary for 2004-05: $45,550 (state average for 2004-05: $41,011)
Operating expenditures per student for 2004-05: $6,419, including $331 in private donations and participation fees (state average for 2004-05: $6,526)
Operating budget for 2005-06: $115,203,016
SOURCE: Highland Park ISD